A sound internal control process is critical to an entity’s to reduce problems associated withlowering revenues and too able the entity to meet its established objective. The studydesigned to investigate the effect of internal control systems on revenue of hotels in Bahir Darand Gondar Cities, Ethiopia.To do so, the study comprised 30 hotels from the two city toinvestigate the relationship and effect of control environment, risk assessment, controllingactivity, information and communication systems, and monitoring activity on revenue of hotelsvia logistic regression model. The study found that not all internal control components have apositive significant effect for increasing of hotels revenue. However, the study foundthat controlactivity, information and communication and monitoring of internal control were predictors ofhotels revenue.